Choosing a career is a difficult decision for some of us. Whether you’re just starting out or changing careers, mortgage broking is a rewarding field that could be the right fit for you. To begin, what do mortgage brokers do?
Mortgage brokers are finance professionals who act as a go-between for their clients and lenders in order to find the best loans for their clients’ financial situations. To balance multiple client’s needs and lenders, mortgage brokers must have excellent customer service, numerical, communication, and organisational skills.
Now that you understand the basics of what a mortgage broker does, consider why you should consider a career in mortgage broking.
Starting a career in mortgage broking will not cost you thousands of dollars in tuition, and you can usually establish a career within a couple of years. To meet the minimum education requirements for becoming a mortgage broker in Australia, you must obtain a FNS40815 Certificate in Finance and Mortgage Broking. You should also consider joining a professional organisation.
To join the Finance Brokers Association of Australia (FBAA) or the Mortgage and Finance Association of Australia (MFAA), you must first obtain a FNS40815 Certificate in Finance and Mortgage Broking or a FNS50315 Diploma in Finance and Mortgage Broking, depending on the association. Professional associations represent their members, maintain industry ethics, and provide training to keep members up to date on industry regulations.
As a mortgage broker, you must complete yearly Continuing Professional Development (CPD). This ensures you’re up to date on industry regulations and trends, as well as giving your clients your all.
The industry offers excellent opportunities for advancement, and you can choose to work for yourself or for a brokerage. The more skills you acquire and the further you advance in your career, the greater your earning potential. You may eventually decide to start your own business.
Mortgage broking is a rewarding career because you will be assisting Australians in realising their dream of owning their own home or starting their own business. Applying for a mortgage can be a daunting and confusing process, with many people believing that getting into the property market is nearly impossible.
Mortgage brokers put their clients at ease by finding the best loan for their financial situation. Working in a fulfilling role will keep you fulfilled and satisfied throughout your career. If you enjoy working with people and are good with numbers, mortgage broking could be a good career for you.
Throughout your career, you will have the option of working for yourself or for a brokerage. Both options have significant advantages and may be appropriate for you at different stages of your life. You’ll manage your time and income as a self-employed mortgage broker, which is appealing for work-life balance. You’ll need to build your own clientele and reputation, which will take time and effort, but your efforts will be rewarded in the long run.
If you work for a brokerage, you will have existing clients and a consistent income, which can provide you with more security. A brokerage may be able to help you with your education and development, which is a plus for your career advancement.
Both scenarios offer distinct advantages, and the ability to work in a variety of settings adds variety and excitement to your career.
Mortgage brokers work with a wide range of clients, lenders, and scenarios. Because every client is different, you’ll be dealing with a wide range of situations and determining the best solutions. Your clients will not always require assistance with residential property loans; you will also have clients purchasing commercial property.
You will assist clients in purchasing their own home for residential property, whereas you will assist clients in purchasing commercial real estate, such as office, retail, or warehouse space, for commercial property. Having a diverse and varied role promotes learning, productivity, and motivation.
IS MORTGAGE BROKERAGE A GOOD FIT FOR ME?
If you’re looking for a new career path, mortgage brokerage can be extremely rewarding. Long-term success, however, necessarily involves certain personal qualities and some of those are explained below:
You are a sociable person.
On the surface, mortgage broking entails assisting customers in selecting the best home loan or investment loan for their needs.
This definition, however, does not tell the entire story.
The majority of Australians have a long-term goal of purchasing a home. Millions more hope to increase their wealth by purchasing an investment property.
So, from the perspective of your customers, a mortgage broker is the conduit through which they can achieve personal objectives. That’s a big responsibility and prioritising your customers’ needs is critical to your success as a mortgage broker.
Remember that many Mortgage brokers have grown their businesses to the point where they employ a team of people – frequently across multiple offices. You must be able to bring out the best in your employees while remaining committed to your customers’ needs.
You like change.
Let us not sugarcoat anything. In Australia, the lending environment is constantly changing, and a good mortgage broker must be able to cope with – and more importantly, actively embrace – change. After all, with change comes new opportunities.
You already have a large contact network.
Mortgage brokers with established contacts and a proven network have a significant advantage in today’s competitive market.
It takes time to generate independent leads. That’s not to say it can’t be done; however, as with anyone who embarks on the journey of owning a small business, you must consider how you can generate independent leads to generate valuable revenue almost immediately.
You have a strong desire to sell.
No small business can thrive for long if it does not keep a close eye on sales. The ability to identify and capitalise on opportunities to add value, secure a “customer for life,” and propel your business forwards will be critical to your success as a mortgage broker.
You recognize that you are the key to your company’s success.
All successful business people understand that one person is the foundation of their success – themselves! They provide exceptional support throughout initial training, mentoring, and ongoing support through state and national conferences, as well as regular training seminars and lead generation. This is in addition to the brand recognition that all Mortgage companies enjoy.
Having a franchisee of a mortgage company, however, entails running your own business, and the success of your venture is directly related to the time, energy, and effort you put into it.
The Benefits of Working in Finance and Mortgage Broking
Being a finance and mortgage broker gives you the ability to assist others. This is a position that offers a lot of job satisfaction. Mortgage and finance brokers are top-tier professionals, but they are also business owners, communicators, researchers, and consultants.
Here are just a few of the numerous advantages of this rewarding profession.
It is your responsibility as a finance and mortgage broker to assist your clients in becoming more financially literate. You can help people understand their options by breaking down the jargon that keeps them in the dark. Assisting clients in making sound decisions while still pursuing their dreams can be a tremendously rewarding role.
Brokers can work independently, expressing their own personal style through the growth of their business. As a broker, you will become known for your personal and professional qualities, attracting clients with whom you truly connect.
You can often be your own boss in the finance and mortgage industries. Once you’ve built a clientele, you can work the hours that best suit your lifestyle and income needs. Being able to fit your work life around your personal life is a valuable asset, especially if you have a family.
A career in finance does not confine you to a single field. The options are nearly limitless, ranging from commercial and residential property sales to personal loans and refinancing. This keeps your work varied by putting you in contact with a diverse range of clients and industry sectors.
This role benefits from research, investigation, and continuing professional development. Keeping up with current events, maintaining excellent communication, and maintaining consistent organisation are all life-affirming abilities.
Controlled Working Environment
In recent years, the mortgage and finance industry has become more regulated, providing a supportive and professional environment for those new to the industry. The industry has never been more welcoming, with best practises based on dedication, hard work, and ethical service.
Change of Career
This position is ideal for those seeking a career change. Previous work and life experiences will be beneficial in this position. Strong interpersonal skills and a willingness to learn could be all you need to get started in this field. Qualifications are both realistically attainable and reasonably priced. You will be able to work with experienced educators at the Australian College of Professionals who will assist you in entering the profession fully prepared.
Commission-based work motivates you to excel and stand out from the crowd. A good mortgage and finance broker has the potential to earn a very comfortable living.
Excellent Customer Service
As a broker, you can provide comprehensive services to your clients while feeling good about your work. In contrast to a bank manager, who can only offer what is endorsed by that financial institution, you are in the unique position of building a case tailored to your client’s specific needs. Rather than simply ticking off a list, your client can provide information specific to their situation. You can then match this to the best lending institution to ensure the best possible outcome.
Mortgage and finance brokers have gained a solid reputation as highly reputable service providers and now contribute more than half of all Australian loan applications. With the right training and the required skills and knowledge, you will be sure to find your place in this highly rewarding profession.
How to Become an Australian Finance and Mortgage Broker?
Are you considering a career as a finance and mortgage broker in Australia? Perhaps the profession has piqued your interest, but you’re unsure where or how to begin.
If you consider yourself to be someone who can build strong relationships with others and has a knack for numbers, a career in finance and mortgage broking may be a good fit for you.
In 2021, there will be a high demand for professionals who are in the industry for the right reasons and can make a significant difference in the lives of their clients. If this describes you, continue reading.
But how do you go from having no experience to working as a financial and mortgage broker? Take a look at these suggestions.
Learn about the role of a Mortgage Broker
You are aware that being a finance and mortgage broker entails assisting people in obtaining the best loan product for their needs. But how do you think that happens? What does a broker’s typical day entail? It may not be what you expect.
The first step towards becoming a mortgage broker is to conduct some research. Read some online or listen to some podcasts (yes, there are lots of broker channels out there). It is also a good idea to contact a mortgage broker in your area and ask for any advice they may have for you.
Understand the education requirements
To become a mortgage broker, you must first become a credit licence holder’s representative. For the first two years of your career, you will work as a representative of a license holder. Then you can choose whether to remain a representative or obtain your own credit license.
ASIC, the regulator, has a minimum education requirement for those seeking a license. Currently, the FNS40815 Certificate IV in Finance and Mortgage Broking is the minimum education required.
The FNS50315 Diploma of Finance and Mortgage Broking Management goes above and beyond the minimum requirements. It is, however, a good option for those who want to keep their career options open and possibly advance to a senior position sooner.
Get your resume ready
At any given time, hundreds of broker jobs are advertised throughout Australia. Professional networking sites are used to fill other positions. The number of finance and mortgage broker positions in Australia is expected to grow in the coming years, according to government projections.
You must be able to demonstrate your knowledge and enthusiasm for the job in your cover letters to make your applications stand out. It’s also a good idea to have references from trainers who have helped you meet your educational requirements.
Another advantage of becoming a finance and mortgage broker is that, while licencing and mortgage broker certification are required with proper skills and knowledge, a degree is not required.
Is it a good job to be a mortgage broker?
Becoming a mortgage broker allows you to earn a high income while maintaining a healthy work-life balance. You are frequently required to work independently, which allows you to customise how you deliver and market your services. Giving you the opportunity to find your point of differentiation and stand out in the market.
Mortgage brokers help people in their community achieve their dream of owning a home. This is something special for those who don’t completely fit standard lending policy, and it gives you a lot of good vibes about your work.
Another advantage of becoming a finance and mortgage broker is that, while licencing and mortgage broker certification are required, a degree is not required.
Are there any challenges in a career as a mortgage broker?
Becoming a mortgage broker in Australia is a fantastic career path, but it is not always easy as you need proper skills and knowledge for it. In fact, only 35% of mortgage brokers continue in their second year of business, so laying the groundwork and leveraging your networks are critical.
As with most businesses, you’ll be working long hours in the first year, and building solid relationships with banks can take some time. You also take some time in the first few months to build up your commission levels. The truth is that becoming a successful mortgage broker typically takes between 5 and 10 years.
Being a broker necessitates both sales and analytical abilities. Most people are not born with both. You’re also dealing with large loans, which means there’s often a lot at stake. All of this can add to the stress of your job.
Diploma of Finance and Mortgage Broking Course – FNS50322
With the Diploma of Finance and Mortgage Broking Management, you can delve into the world of paraplanning.
In this flexible diploma designed for working students, you will learn the fundamentals of finance broking through studies in compliance, ethics, complex lending, loan applications, and risk and practise management. To supplement your learning, you will also investigate modern finance research methods.
Complete this course as you steadily will build the practical skills required to launch your career in finance broking, you will gain theoretical knowledge and learn to apply it. You’ll learn using industry standard software and templates, ensuring that when you finish your studies, you will be ready to go.
The following are the admission requirements for Southern Academy of Business and Technology:
International students are required to:
- Be at least 18 years old.
- Possess an IELTS score of 5.5 or higher (test results must be no more than 2 years old).
- Have completed the Australian Year 12 or its equivalent.
International students may not be required to provide evidence of English language competence if they can provide documented evidence of any of the following:
- The student spent five years of his education in an English-speaking country.
- The student has completed a Certificate IV level course in an Australian RTO for at least 6 months.
- An English Placement Test was successfully completed by the student.
- In Australia, the student successfully completed a foundation course.
- The student has completed their high school education in English.
Students must also attend a course entry interview to determine their suitability for the course.
What exactly does a mortgage broker do?
A mortgage broker can provide a variety of services that will improve the quality of your home-buying experience. A mortgage broker can assist you if you are a first-time home buyer, interested in property investment, looking to sell or upgrade your current home, or simply looking for a better deal on your mortgage.
What exactly is the mortgage brokerage process?
The mortgage broking process can vary depending on your circumstances, but the following are the main steps and services that a broker will provide:
- Understanding your financial situation and evaluating your needs
- Determine your borrowing capacity.
- Compare the loan options available to you from a variety of lenders.
- Do all of the legwork in order to process your home loan application with your preferred lender.
- Assist you in obtaining pre-approval for your home loan so that you can confidently make an offer on a property or bid at an auction.
How are Mortgage Brokers compensated?
Your lender will pay a commission to mortgage brokers. The commission is only paid once your application has been approved and your home loan has been settled.